- Date : 05/09/2023
- Read: 3 mins
A look at the recent performances and trends of the top automobile stocks in India for your investment reference.
From the lows of 11,900 in March 2023, Nifty Auto is presently positioned at the 15,700+ mark. It is an accepted yardstick to measure the health of auto stocks in India. Auto stocks include some of the instantly recognisable names like Maruti, Mahindra & Mahindra, TVS Motors, Bajaj Auto, etc.
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The auto sector had a good year, as the benchmark Nifty Auto crossed 15,700.
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Indian auto sector has established car makers like Maruti, Mahindra & Mahindra and Tata Motors.
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Companies like TVS and Bajaj Motors have a strong presence in the two-wheeler segment.
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Almost all top companies have registered a higher-than-average revenue growth this year.
Top Performing Auto Stocks In India
- TVS Motors – This Rs 1,433 stock has grown by 45.45% in one year. TVS is a trusted name with its two-wheeler market presence and expansion. It also has a presence in the electric scooter category. Its annual revenue and ROE comfortably beat the three-year revenue CAGR and five-year ROE average handsomely.
Also Read: Are You Investing In This Stock After Its All-Time High EBITDA Of Rs 764 Crores?
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Mahindra & Mahindra – Currently trading at Rs 1,584, Mahindra & Mahindra has seen a 21% growth in share price in one year, and 7.38% in 30 days. At 18.24%, its ROE is beating the five-year average of 10.72%. Its annual revenue growth of 34.43% beats the three-year CAGR of 16.85%.
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Bajaj Auto – Popular motorcycle maker Bajaj Auto has maintained a strong share of growth. It's one-, three- and five-year returns are 14.2%, 57.2% and 70% respectively. The company has been free from loan burden for the last five years. The current share price is Rs 4,672.
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Maruti Suzuki – This industry giant is currently trading at around Rs 10,000, which is a 10% rise in a year. It had a 32.9% revenue growth, which exceeds the three-year CAGR of 14.7%. The stock maintains a 10% growth on a five-year average. It has a 41% market share in the Indian car market.
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Tata Motors – This homegrown automaker has delivered an astounding five-year return of 327% on its present stock price of Rs 607. Tata Motors’ annual revenue growth of 24.5% was nearly 15% higher than the three-year CAGR. It is another trusted name in the Indian auto sector.
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Ashok Leyland – Leading commercial vehicle manufacturer Ashok Leyland’s share price is Rs 187 at present. It's one-, three- and five-year returns are 21.5%, 176.6% and 45% respectively. Apart from buses, trucks and diesel engines, this Hinduja Group company also manufactures defence vehicles.
Conclusion
Two-wheeler market leader Hero MotoCorp is another name worth mentioning on this subject. However, it is going through a bearish phase for now, with negative three- and five-year returns. This should remind you that along with market reliability, the stock’s performance and growth prospects are essential factors to consider while investing in any stock.
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Also Read: Are Auto Stocks Entering Speed Limits After A Fast And Furious FY23?
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.
